Wisconsin shared revenue; deadline to strike deal looming

MADISON, Wis. - The clock is ticking on negotiations about spending your state tax money. Wisconsin's Assembly Speaker said he wants the governor and the legislature to strike a deal on shared revenue this week.

As Milwaukee speeds to a fiscal cliff in 2025, new state help for the city is at a standstill. 

"Anything that would affect just Milwaukee would be gone. And again, that is not our first goal. We want to try to get this across the finish line, but we have been at this for weeks," said Assembly Speaker Robin Vos.

Assembly Speaker Robin Vos

The Wisconsin Assembly passed a bill last month that would send every community more shared revenue. That boost would still to go Milwaukee. But Speaker Vos said another boost might have to be cut from the overall shared revenue bill.

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"I feel if we want to get something done, it’s going to be this week. as I’ve said before, it’s not my first option, but if we do not get a deal this week, I think we should strip out all of the Milwaukee things, and we will just focus on the balance of the bill, which is repealing the personal property tax, and making sure that every community around the state is not held hostage by Milwaukee’s problems. That is not my first option," Vos said.

The Assembly-passed bill would allow Milwaukee County and city voters to vote on a referendum. They would decide whether to raise the county sales tax and add a city sales tax. 

City and county leaders want the Common Council and County Board to approve. 

Speaker Vos said that is unlikely.

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"That is very low on our possibility list without some kind of a bigger deal on something that would work," Vos said. 

This debate over shared revenue is putting the brakes on the entire state budget. It usually goes into effect in July. 

"We have the chance to continue with the rest of the budget, trying to meet our deadline of July 4th," Vos said.

Without a budget signed, current funding continues. 

The Assembly Republican chair of the Joint Finance Committee said after Thursday, they will not be meeting to tweak the budget until the shared revenue deal is done – as it ties in with so much of the budget.

Reaction

Gov. Tony Evers (D)

"Well, we had a good conversation, I was going to say something snarky, like well we played euchre, but I'll stick with the truth. 

"We had a good conversation, and I’m very, very hopeful that we will have a good outcome by the end of this week or very soon. We have to get this done—clearly Republicans want it, Democrats want it—it's just a matter of kind of working through some of the more thorny issues, and we had a good conversation, so we are looking forward to it."

Senate Majority Leader Devin LeMahieu (R-Oostburg) 

"The Senate and Assembly have put forth a good faith effort to reach a deal with the Governor on shared revenue and provide financial stability for the City and County of Milwaukee. Today we made our last, best offer to the Governor. If an agreement is not reached today, the Senate will pursue a shared revenue proposal that does not include an option for Milwaukee to raise additional sales tax revenue. 

"The offer we put forth is fair. It is a product of months of work and negotiations. The Governor has a chance to save Wisconsin’s largest city and most populous county from bankruptcy. We hope he takes it. "After today, the legislature will turn its focus to the 2023-25 biennial budget."